In accordance with the most recent FOMC directive, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has updated the current bi-weekly schedule of agency MBS purchase operations. Specifically, today the Desk will conduct an additional $10 billion in purchases, across two separate operations, for settlement on March 23, 2020 (T+2). These purchases are designed to support the smooth functioning of the agency MBS market.
The Desk stands ready to conduct more purchase operations for March settlement in the coming days should this be appropriate to promote smooth market functioning.
Additional operations for Thursday, March 19, 2020 (all times ET).
11:15 - 11:45 AM: For settlement on March 23, 2020 (T+2).
- UMBS 30-year 2.5 securities for around $2.2 billion
- UMBS 30-year 3.0 securities for around $2.3 billion
- UMBS 30-year 3.5 securities for around $500 million
12:15 - 12:45 PM: For settlement on March 23, 2020 (T+2).
- UMBS 30-year 2.5 securities for around $2.2 billion
- UMBS 30-year 3.0 securities for around $2.3 billion
- UMBS 30-year 3.5 securities for around $500 million
These purchases are intended to address highly unusual disruptions in the market for agency MBS associated with the coronavirus outbreak. These operations are part of the at least $200 billion of agency MBS the FOMC directed the Desk to purchase in support of the smooth functioning of markets for agency MBS. The Desk intends to adjust terms of future operations as needed to foster smooth agency MBS market functioning and efficient and effective policy implementation. Detailed information on the schedule of MBS purchase operations is provided on the Agency MBS Operational Schedule page.
